|
|
|
B
|
B
|
A
|
C
|
K
|
TO
|
|
|
S
|
T
|
R
|
A
|
T
|
E
|
G
|
Y
|
Dr.
S. Ramesh Kumar
Professor
of Marketing, IIM Bangalore
Whether
it is a serial in a regional satellite channel or a One
Day International cricket match, there is a non-stop stream
of advertisements, which clutter the commercial break. Well-established
brands attempt to sustain brand recall while new ones try
appealing to prospective consumers to get into their `consideration
set. There are ads for children, housewives and youth. With
advertising expenditure in the order of Rs. 8000 Crores
per annum in the recent times and the proliferation of brands
across categories, there is a strong need to consider the
effectiveness of these advertisements. The idea is not to
cease advertising but to consider how considering decisions
would have to be considered with non-advertising alternatives.
These non-advertising alternatives may also enable a brand
to create and sustain consistent associations, which may
be desirable in terms of long-term implications. A contemporary
approach that creates a synergy between various aspects
of a promotional mix (advertising included) provides a refreshing
approach towards marketing communications. There may be
several objectives of advertising and a promotional mix
could be used in an innovative manner to address each of
these objectives depending on the product category and target
segment.
Creating brand awareness
When a new brand enters a category or creates a new
to the market offering, it needs to create brand awareness.
This would depend on whether the product is a consumable
or a durable. The involvement level in a specific category
also matters on how a brand would want to create awareness.
Itch Guard, a new branded offering for minor skin problems,
used a simple humorous TV commercial to convey the concept.
While the unit cost of the product may be low, the involvement
level of the consumer on the solution offered by the brand
could be associated with high involvement. A brand in this
situation is likely to also benefit from point of purchase
material at pharmacy outlets, departmental stores and even
kirana (grocery) type of shops. The high-utility
solution has to be conveyed to the target segment, which
probably was using traditional substitutes. In this example,
a typical brand personality need not be built at least before
the benefit is sold to the consumer and hence all promotional
efforts should be directed at conveying the benefit and
creating a brand association with the category itself (as
it is a pioneering brand in the category). This objective
would be achieved by advertising, reminder purchase
posters at the point of sale and perhaps conveying the superiority
of the offering through the route of doctors (though it
is an OTC offering).
Kissan Bistix in contrast is a unique offering, which is
aimed at children who have to initially make a change in
their habits regarding the consumption of this offering
(should be eaten with a biscuit stick after it is dipped
in chocolate/any other side dish flavour which is a part
of the package). Moreover the price of the offering is Rs.
5 and this would be associated with low involvement. Moreover,
there is strong presence of generic competition and children
could buy a number of alternatives and some of them may
have price points below the Rs. 5 level. Mass advertising
perhaps could create trials but it may be difficult to sustain
the purchase only through advertising. Innovative contests
built around popular hobbies may enable the brand not only
to create excitement but also sustain the interest over
a longer period of time. This may create repurchase and
probably a cross-section of the segment may make the consumption
a part of their snacking habit. Acceptance of an offering
like this requires a longer time interval and an innovative
approach towards promotion rather than typical sales promotion
or mass advertising or display at the counter of retail
outlets. Besides, given the price point and the offering
there is also a need to be selective in market coverage
for the offering.
Creating awareness in a durable category (even if the consumers
are familiar with the category) requires a different approach.
A strong feature-back up in the offering, leading
to a possible word-of-mouth from users of the brand, will
be effective after the initial advertising awareness created
by the brand. LG, Samsung, Santro and Whirlpool are brands
that have been successful but less than a decade old in
the Indian context. LG introduced several new to market
features in its various product categories; Samsung which
created brand awareness through its World Series
ads, also introduced innovative features in its products
and Santros success (in terms of its market share)
can be attributed to product design, advertising and launching
of variants after brand acceptance. New brands depend on
innovative features to create awareness and this happens
both by advertising and positive word-of-mouth. Promotional
aspects like an event involving the brand formulated to
strengthen the word-of-mouth could add to the promotional
effect. This approach could be compared with the advertising
blitzkreig of several new brands of cars. Skoda, almost
an unknown name in India, has been able to meet with considerable
success (in its niche) because of word-of-mouth for its
Octovia model than through conventional advertising. The
brand has also been selective in its market launch and this
adds to the expectation excitement for prospective
consumers in other markets to enhance the impact of word-of-mouth.
Concept
Selling
When an offering is a durable and new to market, it poses
a challenge to the company. The product may be a good one
but the initial concept selling plays a vital role in the
diffusion of the product. Advertising has to be used in
conjunction with retail demonstration wherever it is appropriate.
TV could be used for creating awareness of the category
but print advertisements are required to address the differing
perceptions of consumers about the risks and value associated
with a new offering. The low penetration of rice-cooker
may make an interesting case study. How should the offering
be positioned especially when in the urban context gas stoves
have a high degree of penetration? Would the device be useful
for cooking menu other than rice? What is the perception
of the target consumer? Or is it worthwhile to position
the offering effectively only as an occasion based household
device? How could demonstration be used to change the negative
perception of consumers? Should all retail outlets be used
or only specific retail outlets in an area be used? How
does the usage cost compare with substitutes? As it can
be observed, these dimensions require a mix of promotional
decisions.
There is a need to differentiate between primary and secondary
advertising while selling product concepts. Primary advertising
sells the concept while secondary advertising highlights
the features of the brand. It may be difficult to generalise
how a firm should link these two kinds of advertising. There
is a need to consider the product/market situation before
such discussions are taken. When a brand has a competitive
advantage in terms of time (first entry) it could sequence
the two kinds of advertising effectively. When washing machines
were introduced in India (even now the penetration of washing
machines is not high) fifteen years back, Videocon used
a very effective primary advertising to sell the concept
and create awareness about the category. It washes,
rinses and dries was the message and slowly over a
period of time the brand added features that were very specific
to the brand. Later competitive brands were launched in
the category.
The situation becomes complex when a number of brands start
introducing their offerings at the same period of time.
The category of quartz watches provides such an example.
HMT made an attempt to sell the concept during the initial
stages when the category was introduced. Titan, which has
a huge chunk of the category, took a major initiative not
only to build its brand but also to sell the concept of
quartz watches. Besides there were also a number of offerings
from the unorganised or assembled sector which offered low-price
points at the lower end of the market. In a situation like
this, the pioneering brand or any brand, which builds itself
quickly stands to gain. This is because consumers become
familiar with the category within a short time, especially
when prices come down rapidly. Besides, such quick diffusion
is also enhanced by the fact that the category is a necessity
item rather than a luxury. There is also the element of
social visibility associated with the category. Hence for
a national brand, mass advertising is a pre-requisite, provided
it is supported by the other elements of the marketing mix.
Differentiation
Advertisements convey brand differentiation and this may
be important in several categories, which consist of several
brands. In FMCG products like tea, coffee and detergents,
differentiation awareness can be created by
television advertising, but in certain categories there
may be a need to demonstrate the effectiveness of brands.
Differentiation with which consumers cannot connect
may have a negative implication and if a brand connects
consumers with its differentiation, it is likely to also
differentiate itself in terms of getting identified with
the consumer. A detergent or a washing machine, which claims
low water consumption has to demonstrate this
claim at a retail outlet especially given the fact that
the quality of water varies across areas even in a specific
geographical region. It is also essential that a good differentiation
proposition result in a positive word-of-mouth.
In a certain situation, the company may have two offerings
in a product-line and there is a need to differentiate them
clearly depending on the target segments involved. This
is a complex situation where differentiation decides the
growth of the brand and the perceived difference between
the offerings. An added layer to the complexity is the same
brand name being used for the offerings. Fairness cream
is a category in which the benefit is the fairness of the
complexion. A brand like Fair and Lovely built over the
years still has a strong association with the category but
under tremendous pressure from competitive brands and the
most important criteria which these brands is the herbal
touch associated with them. Herbal ingredients are becoming
popular with consumers in several categories and personal
care in India has a strong tradition of herbal care. Fair
and Lovely had to launch its herbal variant (it used the
same brand probably because of the brand equity built up
over the years). The interesting fact is the differentiation
being conveyed by advertising. The original version uses
an aspirational route in which the brands ultimate
benefit is success through confidence. The girl in the advertisement
becomes a cricket commentator based on the confidence built
up by the usage of the product. The herbal variants
advertising has a strong focus on the traditional product
benefit - facial complexion that appeals to youth. The nature
of the models chosen are different and the ultimate brand
benefit is conveyed to be different (though
any fairness cream is supposed to be associated with fairness).
From an explicit benefit associated with the category (fairness)
the advertising differentiation carries the variants of
the brand to a different plane of differentiation. The differentiation
also suggests typical consumer types who may
be drawn towards the respective variants. Goodlass Nerolac
in its recent advertising campaign for decorative paints,
which uses Amitabh Bachchan, has a focus on imagery - joggers,
housewives and children who have a positive attitude towards
the celebrity.
Marketing communication is an area, which offers a high
potential to brands to analyse the utility of several promotional
inputs.
|